Axelspace Holdings forecasts a consolidated net loss of ¥3.6 billion for the fiscal year ending May 2027 and will record an extraordinary loss due to satellite failures. Communications-system problems have occurred on 4 of the 7 small satellites used to provide Earth observation data.
Axelspace Holdings disclosed that it expects a consolidated net loss of ¥3.6 billion for the fiscal year ending May 2027, an improvement from the ¥4 billion loss in the previous fiscal year, although its previous forecast was a ¥240 million loss. Revenue is expected to be ¥6.7 billion and the operating loss ¥2.3 billion, representing downward revisions of ¥2.3 billion and ¥1.5 billion, respectively, from the previous fiscal year.
Communications-system problems occurred on 4 of the 7 small satellites launched in July for the Earth observation data business. The satellites are recorded as assets, and the company plans to record impairment losses on the 4 satellites as extraordinary losses.
The 4 failures have also affected satellite-related contracts, and the company has received written notice from Pale Blue, which develops engines, concerning the termination of a service agreement. The latest earnings forecast incorporates the effects of both the satellite failures and the contract discussions.
The company has disclosed its earnings outlook for the fiscal year ending May 2027 in light of developments involving the satellite failures and related contracts. Additional effects may be disclosed in future updates.